Bitcoin Braces for Pullback as U.S. Investor Demand Cools—Time to Buy the Dip?
Bitcoin's bull run hits a speed bump as U.S. institutional flows taper off. Is this a temporary cooldown or the start of a deeper correction?
Wall Street's crypto love affair pauses for breath. After months of relentless ETF inflows and 'number go up' euphoria, the market's facing its first real test of 2025.
The big question: Are we seeing healthy profit-taking or the early signs of a risk-off pivot? With the Fed still playing whack-a-mole with inflation, traders are suddenly remembering that crypto winters exist.
Meanwhile, Bitcoin maximalists are dusting off their 'I told you so' memes—because nothing makes them happier than watching leverage get flushed. Stay tuned for the next episode of 'As the Stablecoin Turns.'
Markets eye Fed meeting for rate guidance
The Federal Reserve’s July 30 policy decision is one impending event that could have an impact on Bitcoin. Although markets generally anticipate that the Fed will maintain interest rates between 4.25% and 4.50%, risk sentiment may be impacted by the tone of Chair Jerome Powell’s press conference.
A hawkish outlook would likely increase selling pressure, especially if there isn’t an obvious catalyst to prop up cryptocurrency demand. However, if there is any indication of dovishness or that rate cuts may begin in September, Bitcoin may increase in the near future.
Bitcoin technical analysis
With $119,500 serving as short-term resistance, bitcoin is trading close to the top of its Bollinger Band range on the daily chart. The relative strength index is at 60, which is neutral but not overbought, and the 20-day moving average is serving as support.
The MACD and awesome oscillator show weakening momentum, and the stochastic RSI is nearing oversold territory, suggesting a short-term bounce is possible if buying resumes.
Immediate support is at $118,000 while stronger support is found at $116,300. A decline below these levels may pave the way for $112,000 or even $109,000. The price must break above $120,000 with strength to resume its upward trajectory.
However, in the absence of fresh interest from investors, Bitcoin might MOVE sideways or undergo a more significant correction.
